After the rug pull on Monday this week, Binance decided to track the Squid Coin token movement. However, Squid Coin is up by 638% despite the Binance investigation.
Squid Coin Token
Squid Coin is a token that the popular movie, Squid Game, is the internet’s talk inspired. The crypto community jumped into the token, thinking Netflix was behind the coin.
The coin made massive gains on Friday, but the investors flipped the off-switch on Monday and made away with investors’ cash. Therefore, many cryptocurrency exchanges like Binance work together with law enforcement agencies and hackers to track down the scammers.
Binance Tracking Down the Squid Coin Scammers
Binance, in the protection of its users, suspended the developer’s account and ordered its security team to trace the token path. The creators used a crypto blockchain that hides transaction pathways, Tornado, to cash out.
$SQUID, inspired by the South Korean movie “Squid Game,” crashed to almost zero within a few minutes. As a result, Binance froze the wallet addresses of the token holders, who shared a Telegram post concerning how depressed they were. The coin has no use case, is not backed up by Netflix, and has a zero market cap.
The token was trading at $0.00000003635 and is up by 86.5% within a 24- hour trading volume. This is strange considering even the BBC announced the coin’s rug pull. The token even outperformed popular coins like Ethereum and Bitcoin with a 600 percent gain.
Reasons for the Rise
The Shanghai-Based Investor Who Lost Life Savings
However, the rise of the coin might be attributed to one individual who confessed to losing life savings within a week. The Shanghai-based cryptocurrency investor lost $28,000. Whales and creators of the game might have purchased coins out of remorse and empathy for the investor, to help him find stability during these tough economic times.
An Actual Use Case for the Coin
Another reason for the pump might be that the coin might have an actual use case, or investors might be looking to use the coin for the actual promotion of the movie. It is strange. However, the same thing happened with Shiba Inu. Crypto coins tend to pump right after a massive bear crash. We suppose crypto investors have mastered this trend and use it to make a profit.
Binance Has Found the Scammers
The exchange, Binance, has also deployed Blockchain analytics and works with law enforcement agencies to track the scammers. This might be another reason for the 600% gain. The security team might have tracked down the offenders and is waiting to go public with it, but is first making them give back to the Squid community.
Cryptocurrency Investors to Tread Wisely
The cryptocurrency market is highly volatile, and there is no solid explanation for anything. Squid Coin token keeps rising despite deactivating the Website and Official Twitter accounts. All we can do as the crypto community is to sit back and observe. Remember too that blue coins protect wealth in comparison to new market altcoins.